Barron's MFQ

In Season Again: Big Fish, Fast Growth

Growth stocks along with big-cap issues, and energy and foreign shares were stars in 2005.

MUTUAL-FUND MANAGERS WHO HAD BEEN WAITING with bated breath for growth stocks to return to glory began to exhale in 2005's fourth quarter. And fans of large-cap stocks finally had reason to smile, too, after years of seeing their favorites trail shares of smaller companies.

"It looks like we are seeing two shifts in market leadership," says Don Cassidy, senior research analyst at Lipper. "One shift that looks pretty clear is the large beating the small. There's been a tug-of-war all year, and it seems like...